EA Accused Of Overcharging Gamers Up To $926 Million For Madden

[Nevada_Ballin]

As GamePolitics reports, a University of Michigan economics professor has brought suit against the publishing giant, claiming that EA has been able to overcharge consumers on the price of Madden games to the tune of between $701 million and $926 million. Dr. Jeffrey MacKie-Mason came to this conclusion by calculating the difference between what EA was charging for Madden while 2K

[Warbuck$]

Yeah, I read this but the study is flawed. It assumes that since there no competitors, EA charges $60 per game. Even if there were competitors, they'd still charge $60 per game.

Full article
http://www.gamepolitics.com/2009/07/14/economist-ea039s-madden-monopoly-cost-gamers-926-million

[TheRealist]

Yeah, I read this but the study is flawed. It assumes that since there no competitors, EA charges $60 per game. Even if there were competitors, they'd still charge $60 per game.

Full article
http://www.gamepolitics.com/2009/07/14/economist-ea039s-madden-monopoly-cost-gamers-926-million


How do you know this?

More competition would have undoubtedly taken away some of EA's sales because of the cheaper (and argued by many...the better) alternative. Therefore to rekindle that market share, it would only make sense for EA to lower their prices.

[Paydirt404]

They should charge 20.00 for that stiff player running bullsh1t they call a game. Dreamcast turned out better playing games than that, with the makers they had. EA is doo doo capitalizing on no competition.

[GAV]

In the US, which is a free market, this lawsuit is self-serving BS.

[Warbuck$]

How do you know this?

More competition would have undoubtedly taken away some of EA's sales because of the cheaper (and argued by many...the better) alternative. Therefore to rekindle that market share, it would only make sense for EA to lower their prices.

The same reason NBA Live is $60. The same reason Fifa is $60. The same reason NHL is $60.

I'm all for competetion, but for innovation purposes. If lower prices is a byproduct, so be it.

[KillingMyGPA]

How do you know this?

More competition would have undoubtedly taken away some of EA's sales because of the cheaper (and argued by many...the better) alternative. Therefore to rekindle that market share, it would only make sense for EA to lower their prices.

The going rate for video games is $60:

Street Fighter 4 is $60
Fighting game competitor BlazBlue is $60

Call of Duty Modern Warfare 2 will be $60
So will FPS competitor Halo ODST

When ESPN Football released their cheaper NFL alternative, EA still charged full price for Madden. I have no idea how an economics professor from UM could propose such an outlandish idea. EA charged for a game, people brought it. Supply and demand.

Edit: Correction. You were right that EA probably would have reduced the price. I just read another article that EA cut the price of Madden down to $29.99 because of NFL 2k5. I still think the case is BS though.

[Michura]

The purpose of this is to get attention and nothing more. The prof just wants to make a name for himself so he can get more grant money.

[whigsplittaz]

Is there a lawyer in the house?

Please not sideout

It is not supply and demand. Cost is driven by competition. Take your consumables for example. You see every store advertise on Sunday or thursday to the weekend cash. They lower prices to drive people into stores. besides not having any type of competition, what has drove the price of Madden to this level? Head Coach? If company A drops a price to move units company B likely will follow suit.

Let me see, xbox 360 drops the price so PS3 keeps their price high? There is a price point and a point you go for profit. EA knowing Madden is it's cash cow would not drop price. I said this years ago when we debated on NFL2K5 vs Madden 2005. To this day the Madden series is just now trying to catch up to what 2K5 offered. That is 5 years almost. I don't go on release date but when the develope. They start in 04 to release in 05. They started in 09 to get to 10.

I remember getting into debates and people saying EA didnt have the cash or the management this or that. That was my point exactly. Now after 5 years EA wants to use half assed ESPN and add little things in the game to make people try to forget 2K5.

2K5 may not have played as well as Madden (I thought it was better by far) but what it did as far as innovation EA is just now trying to catch up.

[killacs]

The only thing you can really say is EA's agreement with the NFL tends to give EA a monopoly on football games. I'm not sure this violates any sort of anti trust issues though. I agree with Mich this is a total attempt by the professor to get his/her name out there.

[Nevada_Ballin]

Yeah, I read this but the study is flawed. It assumes that since there no competitors, EA charges $60 per game. Even if there were competitors, they'd still charge $60 per game.

Full article
http://www.gamepolitics.com/2009/07/14/economist-ea039s-madden-monopoly-cost-gamers-926-million

If i remember right, when 2k5 came out it was $20 and Madden was $50 (both CG of course at that time). EA did a price drop WAY sooner than it normally does that year..... maybe that's what this is really based on.

[whigsplittaz]

If i remember right, when 2k5 came out it was $20 and Madden was $50 (both CG of course at that time). EA did a price drop WAY sooner than it normally does that year..... maybe that's what this is really based on.

I think so too. But if there is no competition you can set the price as high as you want. Brings into question the moral and ethics of this company. I have not been a fan of Madden since 2002. Since then all efforts have been lackluster at best while not changing much and still priced like it was a brand new funk. It is the cash cow for that company.

[Nevada_Ballin]

I think so too. But if there is no competition you can set the price as high as you want. Brings into question the moral and ethics of this company. I have not been a fan of Madden since 2002. Since then all efforts have been lackluster at best while not changing much and still priced like it was a brand new funk. It is the cash cow for that company.

The other side of the coin though, no one can tell a company what they can sell their products for, no matter what they charge. If that was the case we'd be suing stadiums and carnival owners for charging $7.00 for a 20oz Pepsi.


.

[whigsplittaz]

The other side of the coin though, no one can tell a company what they can sell their products for, no matter what they charge. If that was the case we'd be suing stadiums and carnival owners for charging $7.00 for a 20oz Pepsi.


.

Yeah your right thats why I said moral and ethics. I like this post from a few years ago.

"Old 08-04-2007, 05:14 AM
themenace47's Avatar
themenace47 themenace47 is offline
Registered User

Join Date: Jul 2004
Posts: 1,479
im getting 2k8 because of this thread...

if its a buncha bull**** then im gonna bomb the **** out of all of you with manning to marvin as soon as madden hits...

dude i have tried so hard to be positive and get into ncaa 08 both on ps3 and ps2 but they both SUCK

its so ****in sucky that i cant believe everyone isnt saying it... especially the NG... everyday i wake up and immediately i think... "i should turn on the ps3 and try________", but no matter how i play or what i do the game just blows man...

the ps2 is ok but the freakin bull**** that takes over and hands the game to 1 guy just ruined it for me... oddly enough its worse when im winning from it... i just want the game to end, and when the other guy quits, and he always does... then it wont keep the stats...

losing by 3 tds and then having your first completed pass turn into a fumble was ok... like the first 10x... the d-line crashing into the backfield during these beatdowns is really fun too but not nearly as much as the sacks or the ints after your opponent chucks some bombs into coverage for tds....

if 2k is good enough ill play it over madden and ncaa in a heartbeat, EA took a fun competition and turned into some goofy money making marketing nightmare... trying to add "balance" to a video game is cool for **** like mariokart and pong, but the last thing i want is some ****ing cig-smoking couch potato hucking bombs on me 14x a game and then poppin off about how its "cuz you called zone" like he's using masterful innovative strategy over my "newb defense" that i developed over the last 20 years of living life like it revolved around a football....

those EA playbooks i cant edit will be enough to turn me away from the evil empire...

im getting up and going shopping tommorrow, im gonna see if gamestop will apply my deposit for madden to all pro and for the first time in a while ill be skipping the midnight sale if 2k plays good...

then ill wait and see if the NG madden sucks as much donkey thing as ncaa does before i flush another $60... and let my buddies get the ps2 version and see that too...

aw hell, maybe ill still pick up the ps2 version at midnight... how bad could it be???"

[whigsplittaz]

I remember this though.

http://www.youtube.com/watch?v=vzdjYFjUzdo&NR=1

[JoeJGibbs]

If i remember right, when 2k5 came out it was $20 and Madden was $50 (both CG of course at that time). EA did a price drop WAY sooner than it normally does that year..... maybe that's what this is really based on.

Well you also have to take into account that the 2k game was REALLY good.
You can't just make a cheaper crappy alternative. In order for this to work, your product has to actually be just as good @ $20 while your competitor is @ $50.

And it was, people bought 2K liked it, and EA said "phhhhhuck", and lowered theirs.

[whigsplittaz]

Well you also have to take into account that the 2k game was REALLY good.
You can't just make a cheaper crappy alternative. In order for this to work, your product has to actually be just as good @ $20 while your competitor is @ $50.

And it was, people bought 2K liked it, and EA said "phhhhhuck", and lowered theirs.

Then EA bought ESPN the NFL and people been stuck on stupid ever since. I will not get off my EA bash bandwagon. I think 2010 might be the 1st Madden game i may like because it is supposed to bring you into the game then give great game play. Matter of fact gonna pop in NFL2k5 to see what EA has still not brought to the table after 5 years while 2K did it in way less time.

[whigsplittaz]

Its in the engine which has been the same for eons.

http://www.youtube.com/watch?v=iFaT4oqFSoQ&feature=channel

http://www.youtube.com/watch?v=7a8oMyLhYhw&feature=channel

As posted elsewhere on this forum.

[Nevada_Ballin]

Then EA bought ESPN the NFL and people been stuck on stupid ever since. I will not get off my EA bash bandwagon. I think 2010 might be the 1st Madden game i may like because it is supposed to bring you into the game then give great game play. Matter of fact gonna pop in NFL2k5 to see what EA has still not brought to the table after 5 years while 2K did it in way less time.

Gotta remember, EA didn't "buy" the NFL - the NFL went SHOPPING for exclusivity. It wasn't like EA went to the NFL and did some sneaky, back room deal nor was it some Haliburton no-bid contract type of thing. The NFL went out and solicited bids from all interested companies, including 2K. At one point, EA was all but out of it but decided to enter one last bid and that was the one got them the deal.


.

[whigsplittaz]

Gotta remember, EA didn't "buy" the NFL - the NFL went SHOPPING for exclusivity. It wasn't like EA went to the NFL and did some sneaky, back room deal nor was it some Haliburton no-bid contract type of thing. The NFL went out and solicited bids from all interested companies, including 2K. At one point, EA was all but out of it but decided to enter one last bid and that was the one got them the deal.


.

Yeah I agree but can you honestly say or believe the NFL did the like ok here we go, we are shopping ourselves? I mean the name Madden alone made the NFL choice easier. They are no fools. I mean they say it was open but ya boy ain't buying it for 1 minute. Thats like slamming the door on one of their own. The whole video game world with no Madden????? Naw not that simple to me.

[themenace47]

i have heard there actually is a legal basis to argue for the money between what the game costs and what it would sell for if there was fair market competition.

problem is, there really is no ban on football games and im pretty sure it was the nfl who threatened other game developers with that exclusivity since they openly state when asked: we wanted to control certain aspects of the game like rosters, uniforms, rules, stadiums and other issues deemed ultra-important to the nfl that are just being left behind completely in a game creators rush to beat EA to the market in august...

banning profanities, true glitches, out of place officials/other logistics, advertising conflicts, rae carruth, oj simpson, bellicheck and others who wont allow their name on the game are the PRIMARY concern for the NFL...

and from now on these issues will have be worked out when a company approaches the NFL to discuss any future partnerships... imo we should thank 2krap and the hoardes of douche$$$ who came running to the table with 20 dolla games still in the testing phase...

at this point though i wanna go back, i hope EA gets seperated from that $ and we go back to whoever used to make that game fun... the new games while beautiful are shtty to play for a long time. at least i used to be able to distract myself for 2 days with 2k's disc/coaster:o

[Paydirt404]

EA has underperformed every year. They continously sell that awful Madden, but what does the public do, buy it. Football is the number one sport in this country, as far as Im concerned, and who wants to be left out?

Take into consideration was NBA2K has done to Live, absolutely destroyed it. Who the fug plays Live anymore? The reason is because EA does just enough to get over on the consumer, but no more. That NBA Live challenge is a joke, has anyone seen the footage of it? Complete glitch fest. I consider the Madden Challenges and Live Challenges as a cheap way to push the subpar product, so those that compete have actually buy the product. The same way Puff does a "make the band" to extract a new set of fools to sign with Badboy Records.

I want competition for football, like basketball. I watch my friends play madden on xbox360, and I just end asking them, you really like that sh1t?:eek: